By: Doug Rosen
As always, I start out my analysis for the EUR/GBP taking a quick look at the EUR/CHF to determine the strength of the EUR.
Starting out with a quick peek at the weekly chart we are moving up right along, the 5 ema has crossed the 13 and 21 ema, however, price is approaching a declining trend line that ahs been respected on an many as three previous occasions.
On the daily I see a horizontal resistance line that is no doubt obvious to other traders. On the 4 hour chart we are obviously riding the 5 ema up, and on the 1 hour chart the 13 rma has been in control with the 21 ema standing in when necessary.
Price has busted the monthly and weekly R2 reversal pivot point, and is above the daily Central pivot point as well. This is all very bullish and leads to EUR strength, however, we must remember the EUR/CHF is up against visual resistance that can cause a sudden shift in price action.
Moving on to the GBP/CHF I can see it is very similar to the EUR/CHF. It is very bullish yet approaching strong visual resistance areas such as a descending trend line and a weekly 55 ema. On the daily this pair is gracefully riding up the 5 ema with an upper Bollinger Band open and pointing up. On the 4 hour we riding the 13 ema, on the 1 hour the 55 ema appears to be in control and on the 15 minute the 233 ema is in control.
This pair recently touched the monthly and weekly R2 and was pushed down a bit and that area overlapped with yesterdays high. At the time I am writing this analysis this pair is hovering just above the daily central pivot point as well as the 15 minute 144 ema. All in all these are all bullish signs, however, we must keep an eye on the 1.4470 zone when price finally reaches that area. Now, moving over to the EUR/CBP charts it is obvious this pair is bearish based on the position of the ema's.
Price is up against the weekly 5 ema and on the daily chart we are at a 61.8 fib of the recent swing down overlapped with the 13 ema. On the 4 hour chart this pair looks bullish yet it is between a 50.0 and 61.8 fib level overlapped with the 55 ema and an overbought stochastics.
Moving over to the 1 hour chart I see price is up against the 233 ema and price is up against yesterdays high. With all this being said, price has been very bullish for this pair, however, we are hitting very strong resistance levels so therefore this pair can change at any time.